We present the new phased financing project – „P00001170-2". The funds raised will go towards the expansion of the PRO BRO tunnel car wash on Vienibas Street in Riga. The amount to be raised in this phase is EUR 125 000.

About the project owner:
The project owner's group of companies has the status of a reliable developer, has been operating for more than 13 years and is well known in the Lithuanian market. Its subsidiaries have developed more than 20 mixed use real estate projects with a total area of 20 000 square metres. In the last 4 years, in cooperation with the „PRO BRO", they have completed or are currently implementing 12 built-to-suit tunnel car wash projects and are building the „PRO BRO" headquarters.

About the project:
The project owner purchased a 47.52 acre plot of land in 2021. The developer plans to construct a MIDI tunnel-type car wash. It will be built to 100% completion and leased for 36 months. The sale price of the tunnel car wash is EUR 5 100 000.

Project progress:
A 50-year non-cancellable lease agreement obliging PROBRO operations SIA to pay EUR 363 000 per annum in rental income, excluding VAT, in the 1st year of operation. This amount will be indexed annually to the Latvian CPI (inflation). There is no ceiling for indexation. The Agreement shall enter into force upon handover of the premises to the tenant. The shares of the company in the carwash building will be sold afterwards. The construction works are planned to be completed by 2024 Q3. 

Please note that the project will be financed in subsequent phases on the basis of the LTC indicator. The LTC ratio (Loan-to-cost) refers to the ratio between the loan and the total project cost. The project cost estimate provided by the independent real estate appraiser and project manager Colliers (land, preparatory works, documents and permits and construction of the tunnel washing plant) is EUR 3 830 000.

Project financing will be provided on the basis of the submitted deeds of execution, within the maximum LTC of 65% and the maximum loan amount. No additional reassessment of the asset will be carried out between the financing rounds, and the financing decision will be based on the invoices and the fact of the works carried out.

Interest by investment amount:
– From EUR 100 to EUR 749 – 8.2%
– From EUR 750 to EUR 1 499 – 8.7%
– From EUR 1 500 to EUR 2 999 – 8.9%
– From EUR 3 000 to EUR 9 999 – 9.2%
– From EUR 10 000 to EUR 24 999 – 9.7%
– From EUR 25 000 – 10.2%
Important: investments made separately are not aggregated and cannot be pooled.

We plan to raise the amount within 7 days, with the option of extending it to 21 days if we do not raise funds.